Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Around 30% annualized returns for last 10 years…

Posted by Muthu on October 10, 2010

Your support, our passion and a huge dose of luck is working out wonders.

Coming December, it is going to be completion of 4 years of our professional existence.

Both in terms of our AUM (Assets Under Management) and SIPs, we have grown 200% this year of what we were able achieve cumulatively in the first 3 years.

The readers of our emails and postings have grown from a dozen to around 500+ today.

The seeds we’ve sown in the first 3 years are sprouting beyond our dreams. We could not have asked for more.

As you are aware, the growth is purely through referral model and not cold calls, a difficult model to follow but that which provides a very stable and dependable base. No churning, very less redemptions and people who share our vision and passion for long term investing.

To quote Buffett ‘If I buy a farm, I don’t know whether there’s going be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there’s not going to be 20 straight years of great rainfall’.

We and our clients believe in staying for long haul to reap the benefits of compounding and are aware that there would be years of both great rainfall and droughts but ultimately the harvest would be great.

Every day I consider myself to be very lucky to do what I enjoy doing most, helping people to create and manage wealth, thinking, reading, sharing and writing. This is the ultimate luxury despite my limitations due to health issues. I’m planning to do this till my end or as long as my brain functions well, even if my body withers away. I draw inspiration from people like Stephen Hawking, Steve Jobs etc. in this regard.

I’m not concerned about public recognition through media, seminars etc. If it happens, it is a fringe benefit. What is important is recognition from people whom we value. Through media, we would have hardly got a couple of clients and do not look that as a source at all. Every satisfied client is a goodwill Ambassador of us.

I’m glad that despite plenty of discouragement, from both ‘wise and otherwise’ and occasional self doubts, we were able to hold on.  

Kindly accept my heart felt gratitude for your trust, support and perceiving value in us.

I’m continuing to read Warren Buffett’s authorised biography and is really impressed with the way he has shared his vulnerabilities, imperfections, limitations etc. All these facts are not known (in public domain) through any other book, which only glorifies his positive side. Instead of choosing to live by his halo, he has shared a lot from his personal domain, for which there was no need. I salute his honesty and courage and my respect for him has only increased after knowing about his vulnerabilities, follies and imperfections.

For example, he was always unable to come terms to his own mortality and found it very difficult to face every death in the family. His hair had a free fall when he could not stomach a death. The history of suicides and psychiatric illness in the family compounded his problems of mortality. During a certain period of time, he has to face as many as 9 suicides of near and dear. He did not run away to church or got hooked to any other psychological security. Though at times, he was in denial mode, ultimately he came terms with his own mortality and that of others. Marvellous transformation. No doubt, people fondly call him as sage of Omaha.

Only from this book I know that his long time business partner Charlie Munger is near blind or has a very very limited vision due to some kind of cancer he suffered in his eye. He also lost his son due to cancer when the kid was less than 10 years old. He has faced enormous amount of hardships in life. Munger is now 86 and still enjoys his work and appreciates life.  

The fund we are going to discuss today is one of the core holdings we recommend for our clients.

This fund is a stable, consistent and dependable performer.

The performance data is as of August 31’st 2010 (‘today’ for this article) and is obtained from the AMC concerned.

If we were an advisor 10 years ago and you came to us for advice and started investing Rs.5000/- a month in this fund, you would have invested Rs.6 Lakhs over a period of 120 months. The value of your investment today is Rs.36.11 Lakhs today. An annualized return of 29.41%.

If you’ve invested Rs.5000/- a month for the last 160 months (13.33 years) since inception of the fund, you would have totally invested Rs.8 Lakhs. The value of your investment today is Rs.65.04 Lakhs. An annualized return of 25.18%

If you’ve invested Rs.5 Lakhs at the time of inception, 13.3 years ago, your value of investment today is Rs.1.16 crores. An annualized return of 26.42%

Disclaimer: Mutual Fund Investments are subject to market risks. Past performance may or may not be repeated in future. There is no guarantee on returns. Sensex has provided an annualized return of around 18% in the last 30 years.

As I repeat for the n th time, we are in a very sweet spot for next few decades, where we can expect excellent growth in economy, corporate India and hence equities. Please participate and ask your near and dear also to participate in our country’s growth story.

We’ve even made a dream movie ‘SIParan’ with Rajini in lead and has shared the same with you!

SIP is for growing your wealth and MIP is for managing your wealth.

SIP, MIP, SIP, MIP…… repeating and following this mantra would provide financial enlightenment. Unlike spiritual enlightenment which is reserved for only one in a million, financial enlightenment is for all of us. It is for common man like us and is not reserved for the elite.

Please participate. What more can I ask?

One Response to “Around 30% annualized returns for last 10 years…”

  1. Sir, i like your article i am very grateful to you for providing such a fruitful information.

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